The weekly indexes for the brass scrap rose in Delhi and Jamnagar on high offers despite very few deals. A lockdown in Delhi has almost halted trades, while a slow down in demand hampered business sentiment in Jamnagar. There was a dearth of offers to India as importers scaled back purchases amid bleak demand outlook from some major sectors like autos.
Both domestic and imported scrap prices increased due to a rise in LME copper. The three-month LME copper contract rose $395/mt to $9,398/mt on April 20 from $9,002.5/mt on April 14. Besides slow domestic demand, the depreciation of the Indian rupee to below the Rs75 mark against the US dollar also contributed to a lack of buying interest among importers.
Demand in North India remained weak as Delhi and the adjoining area saw a sharp spike in COVID-19 cases causing concerns among workers and industry participants. Most scrap yards and smelters are operating at 30pc capacity in response to weak demand and a shortage of labourers. Importers said suppliers in the UK have shifted their focus to China due to unattractive bids from Indian buyers.
The weekly Davis Index for imported Honey brass, Wednesday, rose Rs11,800/mt ($156.27/mt) to settle at Rs408,000/mt ($5,414/mt) del Delhi consumer while in Jamnagar, the index settled at Rs428,000/mt ($5,668.45/mt) del consumer, up by Rs3,500/mt ($46.34/mt). Jamnagar is facing a scarcity of raw material amid delay in shipments from Europe, fewer imports this week and high demand from some manufacturers catering to the medical sector.
Smelters expect prices to rise amid a shortage of imported scrap in the market. There is no lockdown in Jamnagar but lack of billet exports and slow demand from end-users have forced many yards to shut down or cut production capacity. Some downstream manufacturers reported an increase in demand for brass nozzles used in oxygen cylinders, nuts, socket, and control valve used in ventilators, which is expected to support prices.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs398,000/mt del Delhi consumer, up by Rs15,000. The weekly Index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs408,000/mt, up Rs1750/mt due to high offers.
($1= Rs75.15)